We are pleased to announce the completion of over $4.8 billion of investment sales in 85 separate transactions. 2022 was our team’s second most successful year, following our best in 2021, since its 1987 inception. As we enter our 36th year as a partnership we are enthusiastic about our growth trajectory, particularly the expansion of our multifamily practice. Niko Nicolaou joined the team as Vice Chair of The Multifamily Advisory Group, and Alex Morgan, Samantha Miller, and Morgan Brechman have joined as salespeople; all working alongside longtime stewards Brian Whitmer and Ryan Dowd. We are also pleased to announce the addition of associates Bill Baunach and Maia Sirabian, further supporting our efforts in the office, industrial and retail sectors.
Despite a challenging second half of the year, we continue to increase our market share in office, industrial, multifamily and retail. Activity was led by over $1.5 billion of suburban office sales, $2 billion of industrial (including land) and $1.2 billion of completed multifamily and retail assignments. Looking ahead to 2023, there continues to be liquidity for all asset classes, although heightened levels of investor selectivity prevail. We anticipate more lenders reentering the market, with spreads compressing as the year moves forward. Clarity on inflation and borrowing rates will provide equity investors with confidence to proceed with renewed conviction.
Transaction volume in the suburban tri-state markets remains surprisingly robust. 2022 was particularly strong for office sales, especially well amenitized, Class A properties. While cap rates have risen for industrial product, they remain near historic lows in coastal gateway markets. Tenant demand remains brisk in the tri-state region, with the Port of New York and New Jersey claiming the top spot in North America based on TEUs.
Multifamily sales and development continue to be attractive to investors in the suburban markets as rental rate growth helped mitigate some of the impact of rising interest rates. A “shed and beds” strategy remains for many investors. Retail has returned as a favored investment class, as investors have recognized that shoppers are returning to their traditional in store shopping patterns. The yield advantage for retail vs. industrial and multifamily is particularly notable, along with improved occupancy and rental rates for better located centers.
While record breaking investment sales activity from 2021 carried over in the first half of 2022, rising interest rates and economic uncertainty caused a decline in second half volume. The reverse scenario is expected in 2023, with a slower beginning to the year, and a pickup in the second half as lenders and investors regain conviction. While a number of institutional investors remain cautious, taking more of a wait and see approach, private equity abounds and is actively pursuing attractively priced opportunities that were previously out of reach.
We are operating in unusual times but are optimistic about the future and continued success of our ever expanding team. Most importantly, we have placed the Pandemic in the rearview mirror, enabling us to focus on what matters most and getting back into the office to move our industry forward.
